GBERMIC PRELIM

Created by

Jenn M.

Cards (22)

Governance
Refers to process whereby elements in society wield power, authority and influence.
Corporate governance
System of rules
Characteristics of good governance
Rule of law
Equitable and inclusive
Participatory
Consensus oriented
Accountable
Responsive
Transparent
Effective and efficient
Key principle of corporate governance
Transparency
Accountability
Corporate control
Accountability
Clarifying governance roles and responsibilities
Transparency
Timely disclosure of adequate information
Stakeholders
Have an interest in the business but don't necessarily own it
Shareholders
Short-term inverstoy
Internal stakeholders
Employee
Manager
Owner
External stakeholders
Supplies
Society
Government
Creditors
Shareholders
Customer
Who can be a shareholder?
An individual, group of individuals, corporate entity plus an individual or individuals
Types of shareholders
Equity shareholders
Preference shareholders
Debenture shareholders
Equity shareholders
Owners of the company
Right to question
Promoters and institutional investors
Preference shareholders
No right to question
Right to receive the dividend before payment
Debenture shareholders
Not owners but creditors
Instead of interest they receive interest income
SEC code of corporate governance
Resolution no. 135, dd. 4 april 2002
Board of directors
Appointed persons who jointly oversee the activities of the compay
Role of board of directors in corporation
Allow different parties to contribute capital expertise
Role of board of directors in corporate governance
Setting corporate strategy, overall direction, mission or vision.
Hiring and firing
Controlling monitoring
Reviewing and approving
Caring for shareholders' interest
Synergy
An interaction or cooperation giving rise to a whole.
Role of employees
Provide labor or services to the business
Rights of the employees
To be treated fairly
To be paid as described by the contract
To be allowed to join any train union if desired